Formed in association with Innovation Insurance Group LLC, BitGo is now fully insured from the risk of Fund Theft. Is the first online wallet that has this important type of insurance.
The company prides itself on having the “best” bitcoin web wallet. In fact, their website displays in a large heading “More than just a wallet” offering “Advanced Security”, and “24×7 monitoring” for the “World’s leading Bitcoin Companies” which includes Bitstamp . One of Bitstamp’s operational hot wallets was hacked earlier this year, but the hot wallets are now managed by BitGo’s enterprise services as indicated by a testimonial on the front page by Bitstamps’s CEO:
BitGo is the only company in the industry we trust to secure our hot wallet. The integration was very straightforward, and now I can sleep better at night knowing that my customers’ holdings are secured with BitGo.
The insurance policy applies to all BitGo paid accounts up to $250,000 in value, provided by Innovation Insurance Group LLC and XL Group. The policy covers loss by “acts, errors, or omissions of BitGo technology, processes, and employees, including external hacking incidents and employee theft.” The press release also affirms, “the policy would reimburse BitGo’s customer for the value of the lost or stolen bitcoins.” Clients making claims would be paid in USD rather than the BTC they lost. FDIC coverage is paid for by inflation which cannot apply to Bitcoin due to its limited supply.
“We are proud to partner with XL Group and Innovation Insurance Group on this game-changing insurance product,” said Will O’Brien, CEO and co-founder of BitGo. “The entrance of an underwriter of XL Group’s size and reputation signals that the technologies and standards for bitcoin security, like multi-sig, have reached a threshold of viability to take the industry to the next level. For our large enterprise customers, an insurance-backed guarantee is the final missing ingredient for peace of mind in a robust security software offering.”